An online apartment sharing platform founded in 2008.
20,000+ Berliners hosted more than half a million guests in 2015
Renting out flats as a source of income has become more and more popular.
2 December 2016
## series dmarketentry is constant and has been removed
An online apartment sharing platform founded in 2008.
20,000+ Berliners hosted more than half a million guests in 2015
Renting out flats as a source of income has become more and more popular.
Source: www.insideairbnb.com
Airbnb drives up rent: Schäfer et al. (2016) found that rent growth is higher in neighbourhoods that have a significant number of misused flats.
But What About The Hotel Industry? Guttentag (2015) estimates that Airbnb sold about 15 million room nights in 2012. Similar to that of Fairfield Inn & Suites or InterContinental, two major hotel brands.
Evidence from Texas: Zervas, Proserpio, and Byers (2016) found that a 10 percent size increase of the Airbnb market in Texas resulted in a .39 percent decrease in hotel revenue.
What is the effect of Airbnb on Hotels in Berlin?
The higher the Airbnb supply in a given district in Berlin, the greater the negative effect on the hotel industry in that same district.| Type of Variable | Name |
|---|---|
| Independent Variable | Airbnb Supply |
| Independent Variable | Dynamic Airbnb Supply |
| Dependent Variable | Overnight Stays |
| Dependent Variable | Occupancy Rate |
Fixed Effects (for time and district) to account for unobserved heterogeneity:
\({\log Occupancy Rate}_{it} = \beta _i * \log AbbSupply_{it} + \beta _j * X' + \tau _i + \varepsilon _{it}\)
\({X'}\): Control variables (UE rate, average HH income, passengers arriving in Berlin)
\({\tau _i}\): Time and district dummies
\[{Occupancy Rate}_{it} = \frac {{Overnight Stays}_{it}}{{Hotel Beds}_{it}*{days}_{t}}\]
Introducing dynamic Airbnb supply
Policy Implications
Guttentag, Daniel. 2015. “Airbnb: Disruptive Innovation and the Rise of an Informal Tourism Accommodation Sector.” Current Issues in Tourism 18 (12). Taylor & Francis: 1192–1217.
Schäfer, Philipp, Nicole Braun, Richard Reed, and Nicole Johnston. 2016. “Misuse Through Short-Term Rentals on the Berlin Housing Market.” International Journal of Housing Markets and Analysis 9 (2). Emerald Group Publishing Limited.
Zervas, Georgios, Davide Proserpio, and John Byers. 2016. “The Rise of the Sharing Economy: Estimating the Impact of Airbnb on the Hotel Industry.” Boston U. School of Management Research Paper, no. 2013-16.